It says the turnaround was helped by "pulling the handbrake on discounting" which has led to "trust returning" and "previous customers re-engaging".

The company, best known for its model railway kits, also owns the Scalextric brand.

Hornby is best known for its model trains and railways

However, the company warned itself against "patting ourselves on the back" as it was "still not standing on a platform of profitability".

The CEO told investors: "I believe the path we are travelling is correct and all our efforts are now on moving towards profitability and beyond.

"We have fixed the engine which is now purring nicely. Product development is staffed by a great mix of experienced and enthusiastic professionals and we are getting product to market when we want it. The thinking now is about tuning the engine and ideally adding a couple of superchargers."